Offering Memorandum ADVANCE AUTO PARTS. Universal City, TX

Transcription

1 Offering Memorandum ADVANCE AUTO PARTS Universal City, TX

2 NON-ENDORSEMENT AND DISCLAIMER NOTICE Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â 2017 Marcus & Millichap. All rights reserved. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. ADVANCE AUTO PARTS Universal City, TX ACT ID Y

3 NET LEASED DISCLAIMER Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

4 ADVANCE AUTO PARTS INVESTMENT OVERVIEW 4

5 ADVANCE AUTO PARTS OFFERINGSUMMARY SUMMARY OFFERING EXECUTIVE SUMMARY OFFERING SUMMARY Price $1,500,000 Net Operating Income $105,700 Capitalization Rate Current 7.05% Price / SF $ EMPLOYER Rent / SF $15.10 Air Force US Dept of 2,048 Lease Type NN (Modified NNN) US Dept of Air Force 1,060 Landlord Responsibilities Limited to Roof and Structure Randolph Air Force Base 1,035 Gross Leasable Area 7,000 SF Brandt Companies LLC 855 Year Built / Renovated 2002 Taco Bell 586 V K Knowlton Construction 500 Judson Independent School Dst 455 Stewart Builders Inc 401 Aer Manufacturing Inc 400 Chuys Opco Inc 347 Wood Middle School 336 McDonalds 325 FINANCING Down Payment All Cash Net Cash Flow 7.05% / $105,700 Cash on Cash Return 7.05% MAJOR EMPLOYERS # OF EMPLOYEES * DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2016 Estimate Pop 9,959 72, , Census Pop 9,490 65, , Estimate HH 4,199 27,815 64, Census HH 4,000 25,257 58,921 Median HH Income $55,500 $62,301 $64,234 Per Capita Income $30,669 $28,937 $27,105 Average HH Income $72,745 $75,431 $76,549 * # of Employees based on 5 mile radius # 5

6 ADVANCE AUTO PARTS OFFERING SUMMARY INVESTMENT OVERVIEW Marcus & Millichap is pleased to exclusively present an Advance Auto Parts for sale in the Far Northeast submarket San Antonio. The property consists of a 7,000 square-foot freestanding building located at the Gateway to Randolph Air Force Base in Universal City (San Antonio), Texas. Universal City is host to an dense population with economic drivers such as Northeast Lakeview College, The 1.2 million square foot Forum at Olympia Parkway, Retama Horse Racing Park and Randolph Air Force Base. In December 2016, Advance Auto Parts renewed their lease with their final five year extension ending in December Advance Auto has had strong and consistent historical sales at this location and have expressed interest in renewing their lease beyond Advance Auto parts is surrounded by a dense population totaling 185,929 within five miles of the property. The average household income within three miles is $74,172 and traffic counts on Pat Booker Road exceed 26,000 vehicles per day. Advance Auto Parts, Inc., the largest automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers. Advance operates over 5,200 stores, over 100 Worldpac branches and serves approximately 1,300 independently owned Carquest branded stores in the United States, Puerto Rico, the U.S. Virgin Islands and Canada. INVESTMENT HIGHLIGHTS Recently Executed Five Year Option Located at the Gateway to Randolph Air Force Base Dense Five Mile Population Totaling 185, 929 Average Household Income within Three Miles is $74,172 Traffic Counts Exceed 26,000 Vehicles Per Day Strong Historical Unit Sales #6

7 PROPERTYAUTO ADVANCE NAMEPARTS TENANT TENANTSUMMARY SUMMARY PRICING MATRIX PRICING AND AND VALUATION VALUATION MATRIX Advance Auto Parts, Inc. CREDIT RATING: B2 December 31, 2016 General Information Address 5008 Airport Road, Roanoke, Virginia, 24012, United States Phone Website Key Personnel Chief Executive Officer & Director Executive Vice President & Chief Financial Officer Store Base Thomas Greco Thomas Okray Financial Markets Store Count 5,189 Stock Ticker AAP TTM Sales $9,567,679,000 Current Price $ as of 4/27/17 52 Week High/Low $ / $ Advance Auto Parts (AAP) has taken the lead in the race to become the #1 provider of automotive aftermarket parts in North America. Serving both the do-it-yourself (DIY) and professional installer markets, AAP operates nearly 5,300 stores under the Advance Auto Parts, Autopart International (AI), Carquest, and Worldpac banners in the US and Canada. Its stores carry brand-name replacement parts, batteries, maintenance items, and automotive chemicals for individual car and truck owners. AAP's Carquest, AI, and Worldpac stores cater to commercial customers, including garages, service stations, and auto dealers. AAP acquired General Parts International in Fiscal Year Ended December 31, #

8 PROPERTYAUTO ADVANCE NAMEPARTS LOCATION TENANT SUMMARY OVERVIEW PRICING VALUATION MATRIX PRICING AND AND VALUATION MATRIX 1324 Pat Booker Rd, Universal City, TX Dense 5 Mile Population - 185,929 Recently Executed Final Five Year Option Avg. HH Income w/n 3 Miles $74,172 Located at the Gateway to Randolph Air Force Base Traffic Counts Exceed 26,000 Cars/Day Strong Historical Unit Sales Advance Auto Parts on Pat Booker is a 7,000 square-foot freestanding building located outside the gates of Randolph Air Force Base. Universal City is host to an affluent population with economic drivers such as Northeast Lakeview College. CLOSE PROXIMITY TO: 8#

9 PROPERTYAUTO ADVANCE NAMEPARTS LOCATION TENANT SUMMARY OVERVIEW PRICING AND VALUATION MATRIX REGIONAL AND LOCAL MAP PRICING AND VALUATION MATRIX 1324 Pat Booker Rd, Universal City, TX #

10 ADVANCE AUTO PARTS AERIAL PHOTO 10

11 ADVANCE AUTO PARTS FINANCIAL ANALYSIS 11

12 ADVANCE AUTO PARTS OFFERINGSUMMARY SUMMARY OFFERING PROPERTY SUMMARY NOTES # 12

13 ADVANCE AUTO PARTS MARKET OVERVIEW 13

14 PROPERTYAUTO NAMEPARTS ADVANCE LOCATION TENANT SUMMARY OVERVIEW PRICING VALUATION MATRIX DEMOGRAPHICS PRICING AND AND VALUATION MATRIX MARKETING TEAM CREATED ON APRIL 27, Miles 3 Miles 5 Miles POPULATION 2021 Projection 10,397 80, , Estimate 9,959 72, , Census 9,490 65, , Census 8,340 49, ,113 Average $72,745 $75,431 $76,549 Median $55,500 $62,301 $64,234 Per Capita $30,669 $28,937 $27, Projection 4,441 31,380 72, Estimate 4,199 27,815 64, Census 4,000 25,257 58, Census 3,446 18,214 41,178 $153,423 $148,999 $146,473 8,909 74, , % 3.99% 4.33% % INCOME HOUSEHOLDS HOUSING 2016 EMPLOYMENT 2016 Daytime Population 2016 Unemployment 2016 Median Time Traveled RACE & ETHNICITY White 76.35% 71.67% Native American 0.24% 0.33% 0.31% African American 8.20% 12.68% 16.41% Asian/Pacific Islander 2.73% 2.96% 3.10% Source: 2015 Experian 14#

15 NATIONAL NET-LEASED RETAIL REPORT THIRD QUARTER 2016 Steady Labor Market Underpins Net-Leased Growth in Discretionary Retailers 2016 Net-Leased Retail Market Overview Builders focus on net-leased floor plates as job growth continues unabated. The United States economy continues to be the engine for global growth, even as macroeconomic events such as Brexit continue to make headlines. Employment growth has now reached 24 straight quarters of positive traction, pushing unemployment below 5 percent for the first time in the current cycle. In addition, retail Y-O-Y Average Cap Rates down 10 Basis Points Auto-Part Retailers: Considerable tailwinds from an aging fleet of vehicles on the road will boost demand for replacement auto parts. First-year returns in the space range from the high-5 percent to mid-7 percent band, depending on tenancy and location. Y-O-Y Average Cap Rates down 10 Basis Points Casual-Dining Establishments: Operator performance and branding will be the primary driver of pricing in the casual-dining category. Top-tier national credits offer cap rates in the mid-5 percent range, as regional and local operators drift into the mid-7 percent region. vacancy is at the lowest level since 2005 as a slowdown in construction has prompted retailers to pick up dark spaces across the country. Builders have focused primarily on net-leased floor plates over the course of the current cycle, while drifting into mixeduse projects to fulfill multi-tenant requirements. Though supply has grown, net-leased vacancy has fallen to just above 5 percent. Consumer spending has remained robust and thus tenant demand has expanded. The largest gains are in discretionary categories such as bars and restaurants, supporting a positive outlook for additional tightening in the net-leased sector, particularly as lower unemployment translates into a pickup in labor pricing. Any rise in wages will translate directly into higher consumption, boosting net-leased demand and rental rates. Y-O-Y Average Cap Rates down 50 Basis Points Former apartment owners executing 1031 exchanges dominate net-leased environment in search for yield. As interest rates have remained incredibly depressed, the search for positive yielding assets has soared, particularly in real estate. In addition, aging baby boomers are taking advantage of record-low cap rates in the apartment sector to transition capital to the net-leased sector, where required Y-O-Y Average Cap Rates down 20 Basis Points management and maintenance are much lower. The combination of these two factors has created scarcity in the single-tenant sector, even as construction vaulted above 40 million square feet in This environment has fueled dramatic increases in average selling prices and cap rate compression as multiple bidders compete for the same assets. A steady pace of expansion among multiple retailers in the net-leased space will continue to provide investors with opportunities to deploy funds, especially if international pressures ease over the coming months. Y-O-Y Average Cap Rates down 20 Basis Points Dollar Stores: While store count concerns on the back of merger considerations between Family Dollar and Dollar Tree have trimmed transactions, consistent growth in the Dollar Store category will continue to prompt allocations of capital. Cap rates for these assets typically trade in the mid-6 percent range. Drugstores: The long lease structure of CVS and Walgreens will power the majority of investor dollars in the space, while Rite Aid locations offer a slightly higher yield. Cap rates begin in the low-5 percent region, drifting into the mid-6 percent range for shorter leases and less-traversed locations. Quick-Service Restaurants: The range of tenancy and lease structures have generated tremendous investor interest in the QSR space. Brands such as McDonald s and Starbucks trade in the mid-4 percent range, while regional operations can drift into the high-5 percent band. 15

16 NATIONAL NET-LEASED RETAIL REPORT THIRD QUARTER 2016 Economy During the first six months of the year, organizations created 1.03 million new positions, bringing hiring over the past four quarters to more than 2.45 million jobs, a 1.7 percent rate of growth. Office-using, education and healthcare firms were most active, responsible for more than half of the payroll additions nationwide. Improvement in the labor market has been quite successful in bringing down the number of unemployed workers, with the unemployment rate closing out the second quarter at 4.9 percent. After peaking at 10 percent in 2009, unemployment has been consistently falling, down 40 basis points over the past year alone. Over the past 12 months ending in the second quarter, retail sales rose 2.7 percent as consumers continued to outlay cash for a number of goods. Excluding volatile automotive and gas station expenditures, core retail sales expanded 3.1 percent as energy prices remained erratic. Outlook: Although the rate of global growth is slowing, consumers in the U.S. continue to spend at respectable rates, prompting a positive outlook for the national economy over the coming year. Auto-Part Retailers In July, U.S. auto sales reached 17.9 million units annually, just off a record of 18.5 million reached in November of last year. When combined with an average age of roughly 11.5 years on existing vehicles, auto part sales are well supported Deal flow in the auto-parts segment has remained robust over the past year, with the average price per square foot in the low-$200 range, although infill locations can extend above $300 per square foot occasionally. The average first-year return can vary tremendously based on brand name and location, yet typically exchanges ownership in the high-5 to mid-6 percent range for existing leases. Advanced Auto Parts and NAPA Auto Parts will make up the bulk of trading activity, with new leases in the mid-5 percent first-year return range. Outlook: Relatively higher cap rates, coupled with structural demand as older vehicles are replaced, led to Trailing 12-month period through 2Q * Forecast Sources: Marcus & Millichap Research Services; CoStar Group, Inc. greater investor interest in the segment. 16

17 NATIONAL NET-LEASED RETAIL REPORT THIRD QUARTER 2016 Casual-Dining Establishments Consumers continue to dole out spending at bars and restaurants, with retail sales in this category advancing 6.4 percent over the past year. Investor appetite has focused mostly on national brands that have extensive credit history. Transaction velocity has remained consistent over the past year, with dollar volume reaching nearly $800 million. Prices per square foot will range from the low-$200s to more than $500, depending on tenancy, location and lease structure. Cap rates begin in the mid-6 percent band while extending into the mid-7 percent range for smaller credit tenants and regional brands. Top-tier operators push into the high-5 percent range. Outlook: Investors will focus on large established chains for the bulk of capital inflow into the sector. Struggling brands will proceed to trim locations, while new concepts make up the bulk of new floor plates in the space. Dollar Stores Dollar store brands expand meaningfully, even as mergers in the sector force store closures in a number of markets. Dollar General announced 1,000 planned openings by the end of Despite concerns about store closings, deal flow in the dollar store segment has continued to rise. The average price per square foot typically closes in the mid- to high-$100 range, with lease and location considerations most paramount to investment decisions. The typical cap rate on closed transactions is in the high-6 to low-7 percent range, while new leases will typically extend toward the low-6 percent band. Dollar General stores price at a premium to Dollar Tree and Family Dollar due to merger store closures associated with the latter two brands. Outlook: The growing success of the dollar store segment is bringing more investors into the market, with dollar volume and transactions continuing to grow. This could foster additional price increases as the market expands in size and volume. * Forecast Sources: Marcus & Millichap Research Services; CoStar Group, Inc. 17

18 NATIONAL NET-LEASED RETAIL REPORT THIRD QUARTER 2016 Drugstores Drugstores performed well over the past year, with retail spending at health and personal care retailers up 7.5 percent. The $17 billion pending merger between Walgreens and Rite Aid could create the largest operator in the space with over 13,000 stores. Regulatory approval from the Federal Trade Commission is currently pending, however a decision is due by year-end. The widening of insurance costs and the aging of the American population has prompted vast amounts of capital investment in the sector. As a result, dollar volume exceeded $2 billion nationwide, with prices per square foot exceeding $400. Existing leases typically exchange ownership in the high-5 percent range, while new locations trade with cap rates in the high-4 percent band. Rite Aid trades at cap rates more than 100 basis points above comparable CVS and Walgreens locations, underscoring the significance of branding in the segment. Outlook: The hands-off management structure and long leases associated with the drugstore segment will propel investor dollars, even as concerns over the Walgreens/Rite Aid merger persist. Quick-Service Restaurants Rising discretionary income is supporting traffic at quick-service restaurants. The expansion of the sector has multiplied brands and locations, making the segment the largest in the net-leased market. Transaction velocity rose considerably over the past year, with prices per square foot falling between $450 and $1,500 per square foot, depending on brand name and location. McDonald s and Starbucks stores will trade at significant premiums to the average storefront. The average cap rate was in the high-5 percent band during the last four quarters, with deals ranging from the mid-4s to mid-6 percent. Lease length and tenancy are the most important investor considerations in the segment. Outlook: The ease of operations and brand recognition will continue to motivate investors to quick-service restaurants. * Forecast Sources: Marcus & Millichap Research Services; CoStar Group, Inc. 18

19 NATIONAL NET-LEASED RETAIL REPORT THIRD QUARTER 2016 Capital Markets Recent Marcus & Millichap Transactions City, State Sales Price Price per Sq. Ft. Cap Rate Walgreens Weston, FL $11,236,053 $ % CVS Vernon, NJ $9,750,000 $ % pace of growth. Additionally, higher bond prices have lowered prospective yields, Natural Grocers Wheat Ridge, CO $7,130,435 $ % boosting the appeal of commercial real estate. Red Lobster Knoxville, TN $4,667,299 $ % IHOP Amarillo, TX $4,000,000 $1, % On The Border Fort Worth, TX $3,517,500 $ % Wendy's Chino, CA $3,500,000 $ % Builders will deliver 46 million square feet of retail space this year, with more than Chick-fil-A Dallas, TX $3,400,000 $ % two-thirds of new supply slated as single-tenant structures. This environment will Perkins Blaine, MN $2,835,000 $ % sponsor a fourth straight year of average asking rent growth, with advancement PDQ Clearwater, FL $2,796,610 $ % McDonald's Las Vegas, NV $2,650,000 $ % O'Reilly Auto Parts Bradenton, FL $2,637,803 $ % CMBS lenders. Loans are generally offered at terms up to 10 years at maximum Boston Market North Miami, FL $2,550,000 $ % leverage of 65 to 75 percent. For 10-year terms, rates will typically reside in the high Family Dollar Glendale, AZ $2,400,018 $ % -3 to mid-4 percent range, depending on leverage and underwriting criteria. Red Lobster Hattiesburg, MS $2,276,079 $ % KFC Tilton, NH $2,037,037 $ % Dollar General Stephens City, VA $1,950,000 $ % Applebee's Sidney, OH $1,935,541 $ % Arby's Waycross, GA $1,876,000 $ % Five Guys Wooster, OH $1,800,000 $ % Starbucks Valdosta, GA $1,750,000 $1, % Property Name Global capital markets have remained stable over the past few weeks, even as Brexit and the continued devaluation of the Chinese yuan have induced bouts of volatility into stock and bond markets. Meanwhile, U.S. economic data has proved resilient, with increases in retail sales and steady hiring supporting a measured As the current economic cycle has continued, retail vacancy descended to 5.8 percent by the end of the second quarter. A focus on net-leased construction for pre-leased tenants and mixed-use developments has limited development activity in relation to prior cycles, supporting robust increases in average asking rents. projected to exceed inflation over the same period. Capital markets remain highly competitive, with a broad assortment of fixed-rate products available through commercial banks, life-insurance companies and Floating bridge loans and financing for repositionings are typically underwritten with LTVs above 80 percent, while pricing at 300 basis points above Libor for recourse deals and extending to 470 basis points above Libor for non-recourse transactions. 19

20 INFORMATION ABOUT BROKERAGE SERVICES Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords TYPES OF REAL ESTATE LICENSE HOLDERS: A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker s own interests; Inform the client of any material information about the property or transaction received by the broker; Answer the client s questions and present any offer to or counter-offer from the client; and Treat all parties to a real estate transaction honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary: Must treat all parties to the transaction impartially and fairly; May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. Must not, unless specifically authorized in writing to do so by the party, disclose: that the owner will accept a price less than the written asking price; that the buyer/tenant will pay a price greater than the price submitted in a written offer; and any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker s duties and responsibilities to you, and your obligations under the representation agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker s services. Please acknowledge receipt of this notice below and retain a copy for your records. Marcus & Millichap Tim.speck@marcusmillichap.com Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Phone Tim A. Speck Tim.speck@marcusmillichap.com Designated Broker of Firm License No. Phone J. Michael Watson James.Watson@marcusmillichap.com Licensed Supervisor of Sales Agent/Associate License No. Phone Sales Agent/Associate s Name License No. Phone Buyer/Tenant/Seller/Landlord Initials Regulated by the Texas Real Estate Commission Date Information available at IABS 1-0

21 PRESENTED BY Chad J. Knibbe First Vice President Investments Director, National Retail Group San Antonio Office Tel: (210) Fax: (210) License: TX Anthony "Butch" Lagred Associate Associate Member, Net Leased Properties Group San Antonio Office Tel: (210) Fax: (210) License: TX